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What Are The Different Ways Of Departmentalisation Explain With Examples?

Popular types of departmentalization

  • Functional departmentalization – Grouping activities by functions performed.
  • Product departmentalization – Grouping activities by product line.
  • Customer departmentalization – Grouping activities on the basis of common customers or types of customers.

What is the reason to have different Departmentation types?

The basic need for departmentation is to make the size of each departmental unit manageable and secure the advantages of specialisation. Grouping of activities and, consequently, of personnel, into departments makes it possible to expand an enterprise to any extent.

What are the advantages of Departmentalisation?

The main advantages of departmentalization can be highlighted as follows:

  • Specialization And Work Division.
  • Improved Productivity.
  • Fixed Authority And Responsibility.
  • Measurement Of Performance.
  • Resource Utilization.
  • Better Administrative Control.

What is number Departmentation?

In the case of departmentation by numbers, the persons who are to perform the same duties are divided into small groups and then each group is placed under the control of a supervisor or officer.

What is a formalization structure?

Formalization. Formalization is the extent to which an organization’s policies, procedures, job descriptions, and rules are written and explicitly articulated. Formalized structures are those in which there are many written rules and regulations.

What is departmentalization answer?

Answer: Departmentalization involves dividing an organization into different departments, which perform tasks according to the departments’ specializations in the organization. Departmentalization as a means of structuring an organization can be found in both public and private organizations.

What are the 4 types of organization?

There are 4 main types of business organization: sole proprietorship, partnership, corporation, and Limited Liability Company, or LLC.

What are advantages and disadvantages of Departmentation?

Advantages And Disadvantages Of Functional Departmentation

  • Advantages Of Functional Departmentation. Following are the major benefits or advantages of departmentation by function:
  • Simplicity.
  • Specialization.
  • Better Coordination.
  • Disadvantages Of Functional Organization.
  • Conflict.
  • Slow Decision Making.
  • High Supervision Cost.

What are the controlling process?

Controlling consists of five steps: (1) set standards, (2) measure performance, (3) compare performance to standards, (4) determine the reasons for deviations and then (5) take corrective action as needed (see Figure 1, below).

What are the advantages and disadvantages of departmentalization?

The numerous advantages of departmentalization are as follows- Departmentalization is an effective grouping that enables meaningful work It is easy to coordinate different work in the same department Departmentalization results in the integration of work

What are the five types of departmentalization?

The five types of departmentalization are: functional, product, customer, geographical and process. Functional departmentalization. Most companies practice functional departmentalization. An example is the Production department, HR department, Accounts department, Marketing department and IT department.

What is the meaning of the word departmentalisation?

Meaning of Departmentalisation: ‘Departmentation’ or ‘Departmentalisation’ is the process of grouping the activi­ties of an enterprise into several units for the purpose of administration at all levels. The administrative units so created may be designated as departments, divisions, units, branches, sections, etc.

How is an organization organized in functional departmentalization?

Log in or sign up to add this lesson to a Custom Course. In functional departmentalization, an organization is organized into departments based upon the respective functions each performs for the organization.


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